The DOL has dropped its defense of the Biden-era fiduciary rule. The 2024 rule had been blocked by two federal district courts after challenges from insurance industry groups, and those cases were consolidated in the 5th Circuit Court of Appeals. After requesting multiple extensions in 2025, the DOL filed a motion to dismiss its appeal.
Plan fiduciaries, sponsors, and service providers should verify and document that all individuals involved with the plan are properly bonded. This protects the plan against fraud and dishonesty and helps avoid liability for breaching ERISA fiduciary responsibilities.
The IRS announced that the age 60–63 "super" catch-up contribution limit for 2026 will remain at $11,250 instead of increasing to $12,000 as some expected. The confusion stems from differences in how the IRS calculated the limit for 2025 compared to 2026.
A National Bureau of Economic Research study by Horneff, Maurer, Mitchell, and Odenbreit analyzed how demographics should approach annuitization to protect against healthcare shocks in old age, including long-term care. It compared deferred, immediate, and variable annuities across groups based on sex and education. The authors note that about 70% of people aged 65+ will require LTC, which is costly and rarely covered by insurance. Most retirees rely on plan assets like defined contribution plans or lifetime income products, with Medicaid only stepping in after assets are nearly depleted.
Small 401k plans are not exempt from ERISA fiduciary duties. Whether a plan holds $3 million or $300 million, the same rules apply. Many small business owners mistakenly believe they're too small to face audits or lawsuits -- the "$3 Million Myth" or the “We're Small, So We're Fine" Trap. In reality, the IRS and DOL frequently audit small plans, and class-action attorneys increasingly target them.
SEC Commissioner Mark T. Uyeda suggested that 401k target-date funds could achieve better returns and diversification by incorporating private market investments. However, he noted that ERISA-related litigation risks are a major obstacle, and without legal clarity or reforms to reduce hindsight-driven lawsuits, plan sponsors may avoid offering such exposure even when it could be beneficial.
Congressman Randy Fine introduced the ERISA Litigation Reform Act on Nov. 18. The bill aims to amend ERISA by clarifying the burden of proof in fiduciary-related claims and implementing a temporary stay on discovery during early litigation stages. Its goal is to create a fair and efficient legal framework for retirement plan fiduciaries, employers, and participants, while reducing meritless lawsuits that increase costs and threaten workers' retirement security.
Starting in 2026, the SECURE 2.0 Act will require higher-paid employees to make catch-up contributions to 401k and 403b plans as Roth (after-tax) rather than pre-tax. This change affects payroll, plan documents, and compliance, so plan sponsors should prepare now to avoid errors and participant frustration.
To subscribe to our free weekly newsletter, enter your email address below then click the "Join" button.
NOTE: WE DO NOT SELL YOUR DATA OR EMAIL ADDRESS TO ANY ORGANIZATION.
Collected Wisdom™
Our researchers look for what they think are some of the better resources available to assist you in administering your plan or helping your clients. We group these resources in our COLLECTED WISDOM™ topics to make it easy for you to locate the information you need. Each item in a category contains a summary and date of when it was placed in the group.
We also maintain some older material in these collections for perspective and context.
